The cryptocurrency market has been hammered this week as major cryptocurrency exchange FTX falters, but one noted technical analyst says bitcoin could reach a bottom as early as Friday.
Tom DeMark, the founder and CEO of DeMark Analytics, focuses on the number of days — which don’t have to be consecutive — that there was a close lower than the close two days ago. Subject to various conditions, when the countdown reaches 13, a buy signal is triggered. (The opposite is the case on the way up.)
Bitcoin
BTCUSD,
in the early hours of Thursday rose 6% to $16,698, after falling as low as $15,788. It’s down 22% from last week, and crumbled 76% from its November 2021 peak.
DeMark
For bitcoin, that countdown signal of 13 could be reached by Friday, DeMark said in an email to MarketWatch. In addition, DeMark has been saying that his previously established downside projection of $14,877 could be reached by Friday as well. See DeMark’s analysis on the website Symbolik.com
And if that is breached, “there is a lower and unlikely downside price projection of $12,600 should 1-2 day volatility become extreme,” he said.
DeMark says his analysis historically has done a good job of calling bitcoin tops and bottoms.
DeMark
“Our bitcoin models require both time and price to be in sync before an uptrend or downtrend is likely exhausted. We avoid the pitfalls confronted by most traders who use standard trend following methods and are influenced by their emotions. Our models are objective and designed to sell into strength and buy into weakness. In other words, they are proactive and not reactive,” he says.